Rail is acknowledged as the most fuel-efficient way to move freight over land, with a gallon of fuel stretching an average of 500 miles, according to the Association of American Railroads. In July this year the United States Environmental Protection Agency (EPA) endorsed the push for freight railroads, stating that the transport mode can play a key role in the solution to climate change.

That assessment is something that APM Terminals has been fully on board with for some time. We’re committed to raising the standards of responsibility by offering low or zero carbon solutions for customers and consumers through our decarbonisation efforts and increasing rail transport options.

Record loads in India

Take for example APM Terminals Pipavav, which has taken nearly 50,000 containers off the road to substantially reduce traffic congestion and pollution. Just last month the port handled 206 trains – the highest number this year so far, pulling significantly ahead of its previous loading record of 157 double stack trains in a month in 2020.

Carbon-conscious in the US

Pipavav is not an exception. A few months ago, our operations in Mobile Alabama announced a bumper $60 million rail expansion in response to demand from increasingly carbon-conscious customers.

According to EPA data, freight railroads account for just 0.5% of total US emissions and only 1.7% of transportation-related greenhouse gas emissions (GHG). Added to this, the Association of American Railroads (AAR) states: “Moving freight by rail instead of truck lowers GHG emissions by up to 75%, on average”.

Sustainability with speed

The benefits of rail extend even beyond important net zero targets, as APM Terminals Americas Head, Leo Huisman acknowledges: “Our customers are looking for expanded options for their supply chains so we are focusing on faster connections to rail providers into inland markets.” The APM Terminals Mobile rail facility will therefore enable faster rail loading and departures.

Eyes trained on the future

Customer demand for sustainable and fast transport in the US and India is mirrored in Europe, where our colleague Homam Mansour is keeping his sights on the future of intermodal transport in his role as Rail Planner in our Gothenburg terminal, Sweden. Under his watch, Gothenburg has set an ambition to never refuse extra trains. Says Mansour: “We kept this promise throughout 2022, receiving and handling 84 extra trains requested by our customers at short notice”.

The commitment to rail has seen the volume of containers transported by rail via APM Terminals Gothenburg increase by 13% this year compared to 2021. More than 55% of all goods now reach the port by rail.

At APM Terminals globally, we train our sights on customer-focused, environment-friendly, and speedy supply chain solutions, and those priorities will continue to gain momentum.

MSC has expanded its rail fleet at its newest MEDWAY branch in Belgium with the order of 15 new electric locomotives.

The new locomotives will increase capability at this important Northwest Continent terminal and will be employed for cross-border freight transport in Europe as well as supplementing container transport by ship in serving the eastern hinterland of Antwerp.

Salvatore Prudente, Executive Director of MEDWAY, commented: “MSC continues to invest at a European level via its MEDWAY arm to strengthen its intermodal offering, improving its capacity to serve clients not only with its core deep-sea solutions, but also inland. Improving these areas provides our customers with a portfolio of services and solutions designed to simplify and support their supply chain.

“Our teams of experts are constantly monitoring both customer needs and market trends and we see a great deal of sense in investing in our intermodal capabilities, as customers are increasingly encouraged to move overland cargo by rail.”

Investing in Flexibility and Sustainability

The Vectron MS locomotives, manufactured by Siemens Mobility, have a a top speed of 160 km/h.

“With their record for reliability and flexibility, our Vectron locomotives enable sustainable cross-border freight transport throughout Europe,” said Albrecht Neumann, CEO Rolling Stock, Siemens Mobility.

The new locomotives will be deployed within an East-West geographical scope, improving connections and capacity between Belgium, Germany, Netherlands, Austria and Poland, and landlocked central and Eastern areas such as Hungary, Czech Republic and Slovakia, providing customers with a more flexible, efficient and sustainable way of moving cargo inland.

Falling under MSC’s inland logistics partner MEDLOG, MEDWAY Belgium operates as a licensed freight rail operator in Belgium, the Netherlands, Germany, and Austria and began operations in July 2022. MEDWAY is currently a rail operator in Belgium, the Netherlands, Germany, Austria, Portugal, Spain and Italy and owns rolling stock, operated by partners, in Türkiye and India. MEDWAY runs 40,000+ trains yearly, covering over 8.2 million km, with a global fleet of 115 locomotives and 4,800+ railcars.

Georgia Ports Authority Executive Director Griff Lynch said GPA’s Network Georgia plan to develop rail hubs around the state is gaining momentum, with federal environmental approval for an inland terminal near Gainesville, Ga.

“Our expanding network is increasing rail capacity and connectivity between the port and major manufacturing sites around the state,” said GPA Executive Director Griff Lynch. “Moving more cargo by rail eases interstate traffic and reduces the carbon footprint of the state’s logistics industry by making the most efficient use of the Georgia’s logistics infrastructure.”

GPA recently received NEPA (National Environmental Policy Act) approval for the Northeast Georgia Inland Port in the Gainesville-Hall County area. The Authority will now finalize a grant agreement with the U.S. Department of Transportation Maritime Administration, and then move on to construction. MARAD has awarded GPA a grant of up to $46.8 million to build a new inland container port along the I-85/I-985 corridor. Earthwork is slated to begin in July, with terminal construction scheduled to begin January 2024 and wrap up by July 2026.

Georgia Ports anticipates the inland rail hub will open with volumes of 60,000 containers per year. With the roundtrip truck route totaling 602 miles, this opening volume would alleviate approximately 36 million truck miles on Georgia highways in the terminal’s first year of operation. GPA estimates 46 of truck traffic between Northeast Georgia and Savannah will use rail instead. Cargo moving to the region by rail will reduce truck use from seven hours to less than 30 minutes. The shift will avoid 1.6 billion tons of carbon dioxide (CO2e) emissions by 2054, Lynch said.

“The Northeast Georgia Inland Port will create 20 new direct jobs,” said Stacy Watson, GPA director of economic and industrial development. “However, the rail hub will deliver other opportunities for employment and economic growth as industry is drawn to its logistical benefits. That’s a dynamic we’ve already seen with our Appalachian Regional Port.”

GPA’s first inland terminal, the ARP is celebrating its fifth year of operation with strong volumes. For the fiscal year to date through April, the ARP has handled 28,552 containers, an increase of 23 percent or 5,400 containers compared to the same period last year.

Economic impact from the ARP includes GE Appliances’ $32 million Southern Logistics Center in Murray County, just two miles from the inland terminal. Additionally, Huali Floors has established its first U.S. headquarters and manufacturing facility in Murray County, a $27 million project. Other developments include SK Battery in the Rome-Cartersville area, and the fourth expansion of Hanwha’s solar panel factory.

In West Central Georgia, the Authority has also acquired the site for another new inland port in LaGrange. The 200-acre parcel is adjacent to CSX rail and features easy access to Interstates 85 and 185. While the GPA does not yet have a development schedule for the property, the site could eventually serve the nearby auto plant of Kia Motors Manufacturing Georgia, as well as other importers and exporters in the region.

At the Port of Savannah, construction of the Mason Mega Rail Terminal has increased rail capacity to 1 million containers per year, rerouted Norfolk Southern trains away from neighborhood crossings, and brought rail switching onto the port.

“It’s been mutually beneficial to the port and our neighbors, by increasing our capability while simultaneously improving quality of life in our surrounding communities,” Lynch said. “Expansion projects spanning our berths, terminal space and rail infrastructure are delivering the capacity we need to handle our projected growth for decades to come.”

The Georgia Ports Authority recorded its third busiest April ever last month, with 408,686 twenty-foot equivalent container units of cargo, behind April 2022 (495,782 TEUs) and April 2021 (466,633). The port’s volume last month constituted a 12 percent increase over its pre-pandemic performance in April 2019, when Garden City Terminal handled 364,481 TEUs.